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Millions of liters of gasoline (and diesel) run through the veins of BMW‘s management, from Helmut Panke on down to entry-level clerks. That’s an image BMW AG loves to reinforce. Recently at the Goodwood Festival of Speed, product chief Burkhard Göschel sat down between runs up Lord March’s long driveway in a vintage mid-engine M1 to talk with a small group of reporters. It’s Göschel’s style to give cryptic, yet meaningful answers to questions about future cars, and Goodwood was not an exception. Mostly, he talked about the future of Formula One racing – Göschel has racing fuel surging through his veins along with pump gas and diesel, as dangerous as that sounds.

The biggest controversy is over Formula One’s proposal to change formulas from 3.5-liter V-10 engines (which is part of BMW’s marketing plan for the V-10 M5 sedan) to 2.4-liter V-8s. As we learn in the interview, F1 czar Bernie Ecclestone is the source of Göschel’s, and BMW’s frustration. Team Williams-BMW supports Grand Prix World Championship (GPWC), a shell organization with Mercedes-Benz chief Juergen Hubbert as chair, which is prepared to break off into its own series in 2008 if the V-10 formula isn’t retained. Other topics in this wide-ranging discussion include the new 1 Series, and of course, BMW’s controversial design direction and its iDrive. Motor Trend Detroit Editor Todd Lassa was one of three American reporters at the interview (the others were from Bimmer and Roundel magazines). Here’s his report:

Q: Are there plans for the V-10 (500 horsepower production engine) beyond the M5 and M6?A: Yes. (Göschel’s response confirms a new Z10 sports car. See the October 2004 Motor Trend for details). We see an opportunity to use it in other cars, but not the X5, because the V-10 is mated to the seven-speed (paddle-shift manual).

Q: What would you call an M version of the Z4?A: If there would be a name for the Z4, it would be the M Roadster.

Q: Will there be active steering in the new M5?A: It will be different (active) steering, much more racecar-like than active steering. It’s a different solution with the same idea behind the 5 Series’ steering.

Q: What do you think of Cadillac using the Nurburgring to tune cars like the CTS?A: BMW and Porsche also use the track. We also have a lap record with a special version of the X5 (powered by a BMW V-12 Le Mans engine). It’s a good place to test, because it shows weaknesses you have in a car.

Q: Why is the most powerful 1 Series a diesel car?A: That can change (Göschel hinted that with the next M3 getting a 400-horsepower, 4.0-liter V-8 derived from the V-10, the M1/M2 will have a 3.0-liter inline six M engine).

Q: Clarify your plans for the 1 Series in North America.A: It should have a six-cylinder engine, and not be a hatchback. The Mini has more interior space (because of its front-drive layout).

Q: Will it be a modern 2002?A: The size of the 1 Series is similar. To sell (a 2002 as a modern car) you have to add horses, ABS brakes and so on. It will be a premium, high-performance BMW with two doors.

Q: Will you pull out of Formula One if it goes to V-8s?A: Two-point-four liters gives a power output…you can almost buy a series car. For a manufacturer, it’s getting difficult. I have a personal opinion that some people might want to push the manufacturers out of the business. In my opinion, we need 1,000 horsepower, hard tires, and less influence of aerodynamics. To me today, there is no solution to what would happen past 2007.

Q: BMW is part of a group of manufacturers preparing to start its own series, if the FIA carries through with the 2.4-liter formula.A: In F1, there is no financial clarity. The sporting regulations are handled by dictatorship. We are investing a lot of money. (A manufacturers’ series) can be a breakaway series if we can’t come to an agreement. (Göschel indicated that it doesn’t seem to be happening.)…What we need is an organization that runs Formula One in a clear and open manner.

Q: Will the manufacturers be the organizers in a breakaway group?A: The car makers should not be the organizers of F1. They should be the supervisory board. GPWC would be an open organization. As manufacturers are stepping in, others are stepping out.

Q: Is F1 a sport?A: For me, it is not enough sport. And for me (the 2.4-liter formula) is dangerous for Formula One.

Q: Has BMW’s controversial new design direction caught on, or is it a mistake?A: It was the right way to go. It’s necessary to make a bigger step for the future. It was the first step for the 7 Series, but it wasn’t the only step. The 7 Series was very sporty, now it has become very luxurious. The car has to show brashness. Some of that luxury comes from its high seating position…If you look at the Z4 or 5 Series, you can see it fits together. If you have a look now, the 7 Series is in the middle of its lifecycle. (And others are beginning to copy its styling, he says, citing Mercedes’ CLS-Class.)

Q: We’ve heard the new 3 Series will be more conservative.A: The position of the 3 Series is between the Z4 and 5 Series.

Q: What about criticism of iDrive?A: The basic concept is correct. The screen is the height of your eyes, with driver orientation and head-up display (on the new M5). To handle that, you should not have to look at (controls). Some areas could be improved. Especially the radio for our American friends. Maybe also some of the climate functions.